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FTX Case Is Failure Of Centralization, Not Of Crypto, Says Tim Draper

Published 04/11/2023, 14:19
Updated 04/11/2023, 15:40
© Reuters.  FTX Case Is Failure Of Centralization, Not Of Crypto, Says Tim Draper
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Benzinga - After a five-week trial, disgraced former head of FTX, Sam Bankman-Fried, was found guilty of seven counts of fraud and conspiracy, for which he faces a maximum sentence of up to 110 years.

Bankman-Fried's verdict was returned after less than five hours of deliberation by Manhattan jurors.

On Friday, journalist Tiffany Fong posted an audio clip of an interview on X that she had conducted with Bankman-Fried while he had been under house arrest. In it, Fong asked Bankman-Fried what would happen if he were to "go to prison for life." Bankman-Fried responded, "I try not to think about it. I don't think it's helpful to think about it. I tend to focus on the pathways I'll have. I tend to think about ways I can make things better."

The verdict was welcomed by insiders in the crypto space, including Alex Chizhik, COO of the Digital Chamber of Commerce, who said by email:

"This had nothing to do with crypto, Bitcoin, or Blockchain. It was good old-fashioned fraud that's been around for thousands of years. It is good to put this event behind us and have the solid, decent players in our industry continue to build. I could not be more excited for the future of our industry."

The Digital Chamber of Commerce will speak at Benzinga's Future of Digital Assets conference on Nov. 14. This event will discuss the evolving regulatory environment in the US and the creation of a favorable environment for the adoption of digital assets.

We asked Bitcoin evangelist and billionaire investor Tim Draper for his reaction to the guilty verdict as well. Draper believed that the problem was not a crypto-specific issue, but an inevitable consequence of centralization, which has led to corruption in and out of the cryptosphere.

"Centralized control of currency is never as good as decentralized currency like Bitcoin. Centralized control, like Central banks or FTX, leads to corruption or mismanagement."

Draper believes that the verdict — and even the protracted saga of Bankman-Fried's misdoings — will ultimately be favorable for the space if it leads to more Bitcoin awareness.

"Inflation and economic whipsaw effects are a direct effect of centralized control. More awareness will lead more people to Bitcoin."

With recent progress in multiple spot Bitcoin ETF applications and the upcoming halving of Bitcoin in April 2024, Bitcoin price has risen to $34,500, with experts anticipating bullish sentiment for BTC in the coming months.

When asked about his long-term Bitcoin price predictions, Draper responded that he is looking forward to $250,000 Bitcoin "likely early next year (in 2024)."

Meet and engage with transformative Digital Asset and Crypto business leaders and investors at Benzinga's exclusive event: Future of Digital Assets. Tickets are flying: Get yours!

Photo: Shutterstock

© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Read the original article on Benzinga

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